An Innovative Home Financing Solution
The Home Ownership Accelerator is a unique home loan offered to you by Pinnacle Mortgage Bankers. The Accelerator replaces a traditional mortgage with a combination of a home equity line of credit and a checking account. When used effectively, the Accelerator can reduce interest costs and the time it takes you to fully pay off your mortgage by using your idle cash more efficiently. And you have the flexibility to access the equity paid into your loan when needed. All this with no change to your spending habits.
Reduce outstanding loan balances and minimize interest payments
The Accelerator is designed to help you pay off your principal balance faster — meaning you pay less interest — than with a traditional mortgage. The key to paying off your home loan balance faster and minimizing interest cost is to drive down your principal balance (even temporarily) by depositing any cash you aren’t using right now into your Accelerator account. The longer your money stays in the account, keeping your balance lower, the more interest you save. Plus, the interest expense saved can be greater than interest earned from traditional checking and savings accounts, money markets and CDs.
Benefits of the Home Ownership Accelerator
Paying less interest means that more of your income can go toward paying your principal balance. This allows you to pay off your loan years earlier than you would using a traditional mortgage.
How does the Accelerator loan work?
Deposits added to your account lower your loan balance, while payments made from your account increase your balance. The interest you pay is based on the average daily balance of your loan. By making deposits as soon as possible and delaying any payments until they are due, you can pay off your balance faster and lower your interest costs.
For many people, the largest regular deposit is a paycheck. Directly depositing your paycheck into your Accelerator account is the best way to pay down your principal balance and reduce interest on your loan.
At the end of each day, any additional deposits you make to your Accelerator checking account are swept out as a payment against your line of credit, reducing your loan balance.
Using the Accelerator, you could:
- Save thousands of dollars in interest payments
- Build equity faster
- pay off your principle loan balance in half the time
- Maintain your current spending habits
Instantly access your available equity
An Accelerator loan enables you to pay all your expenses from your linked checking account. You have full access to cash via checks, an ATM/debit card and online bill pay.
This allows you to maintain your current spending habits while reducing the amount of interest paid on your loan. Each time you make a payment with a check or use online bill pay, your debit card or any other payment method, your loan balance increases.
Take control of your mortgage
The Accelerator could be right for your situation, and it may provide more value than a traditional mortgage. With your sound credit, positive cash flow and responsible money management habits, you can take advantage of this powerful tool to go beyond a monthly payment schedule, paying your mortgage off faster and saving thousands in interest.
Tools to help you maximize your Accelerator
Once you close on your Accelerator loan, we’ll provide you with a checking account that is linked to your Accelerator line of credit. An account welcome kit, checks and Ameriprise Bank Debit MasterCard® will arrive shortly after your loan closes. Your welcome kit will provide all the necessary information to set up your online access, online bill pay and direct deposit.
